What are the pros and cons of holding BITO in TFSA or RRSP

BITO is a US domiciled fund. Which means if you hold it in an RRSP, you won't be subject to withholding tax. As far as I see, the fund's distributions look to be dividends. This can obviously change in the future which ultimately impacts the taxable implications of it but for now, all of its distributions have been dividends, and in an RRSP, they wouldn't be subject to withholding tax unless there is something particular about the fund I'm not seeing.

In a TFSA, because that account is not recognized by the tax treaty between Canada and the US as a retirement account, you'd still pay the withholding tax on the dividends of 15%.

In a taxable account, you'd pay the withholding tax but on equities, you can recover some of that via the foreign tax credit. However, I am not sure of the way this works with it being crypto and not an equity. You'd have to potentially talk to an accountant about that. I'd imagine it is the same thing, but can't say for certain.